Seeking Alpha

HudBay Minerals extends takeover offer for Augusta Resource to May 27

  • HudBay Minerals (HBM) says it is extending its offer to acquire all outstanding shares of Augusta Resource (AZC) to May 27; the hostile offer had been set to expire today.
  • HBM, which owns a ~16% stake in AZC, has offered 0.315 of a HBM share for each AZC share, currently valuing the company at ~$458M, or $3.15/share.
Comments (3)
  • zolt4444
    , contributor
    Comments (2) | Send Message
     
    offering 3.15 share yet the stock is trading at 2.77 share?
    16 May 2014, 06:13 PM Reply Like
  • King Rat
    , contributor
    Comments (770) | Send Message
     
    It trades ~3 on the TSE, so a 5% discount, but as HBM is $10 now and under $9.50 a week ago, by the time somebody purchased now, had shares settled, tendered their shares, had HBM shares settle, then deal with dilution of HBM from everybody else tendering, then dealing with the tax hassle, that 5% could disappear fast. Been long HBM a while, but it's time to give it a rest and sell.
    17 May 2014, 03:17 PM Reply Like
  • Sumosabe
    , contributor
    Comments (4) | Send Message
     
    Well, folks need an incentive to sell, don't they?
    16 May 2014, 07:06 PM Reply Like
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